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Sucker's Rally Approaching an End

Techzone 12 is right. The debt is being transferred from the banks to the public balance sheet...which is fair enough, since it was the euphoric delusion of "unlimited abundance" persistently preached by LBJ and others all the way to BHO, Dodd, Frank et al, that created the conventional wisdom that CRA, BS mortgages etc were fine, and then both coerced and incentivized the banks to facilitate the toxic debt, creating both the bubble and its implosion. Rubin and Bill Clinton are the prime perps to recognize here, both for the 1993 restrictions on corporate deductability of income which unleashed the cult of "performance-based compensation", and use of the Boston FED "analyses" on redlining to pressure banks into lowered-standards-unde...

Events have consequences. Marketing master Ted Levitt suggests "The future belongs to people who see possibilities before they become obvious." In the present fiscal toxemia, the names Kyle Bass, Michael Burry, Steve Eisman, and Jeff Greene are among those who recognized the dissonance, foresaw the meltdown, and ignored the conventional "wisdom" while positioning themselves to score billionaire-level victories. The ongoing transfer of toxic costs to the public balance sheet is the price of 45 years of delusional romanticism. As long as our "leaders" ignore this point, there is no reason to take them seriously in anything. Just figure out what they're peddling, and SHORT them, ruthlessly.

On this same "possibilities before they become obvious" theme, CareerBuilder has a 3/09 survey saying 6 of 10 upcoming retirees will take years to recoup losses in their 201Ks, my estimate is an extra 4 years in the workforce, on average, for the next several years. Rough guess, an extra 2.4M jobs needed, maybe more, as this becomes a new norm...likely losers - the college grads in classes of 2009-2012, whose potential employers won't have 2.4M vacancies to fill each year. "Normally", unemployment is a lagging indicator, but a mass boomer postponement has potential to put a whole new spin on "change we can believe in". Read about it in TIME, March 2011, or later.



On Apr 13 02:02 PM techzone12 wrote:

> It's called a sucker's rally, because it sucks you in...
> What we are witnessing is the transfer of debt from the big banks'
> balance sheets to the taxpayer. So all of a sudden, the banks are
> making record "profit"!. Congrats!. It's time to distribute new bonuses!.
> Enjoy the ride!
>